The Dollar/Yen continues its rise as the US Dollar strengthens due to a hawkish statement from the US Federal Reserve. In yesterday’s FOMC statement, Fed's Powell repeated his panel’s intention to continue hiking rates gradually as household spending remains strong, growth in investments maintains its stable rise, and inflation remains within the desired range. For today, investors will continue to digest yesterday’s FOMC statement and they will also keep a close watch on the performance of US stocks as stocks remain a significant driver to the pair. A strengthening equity environment decreases demand for the safe haven Yen and pushes the Dollar/Yen pair higher.
The pair continues its slow and steady rise as the US Dollar strengthens. Depending on today's US PPI figure and the performance of US equities, the pair will either push higher and break yesterday's highs at 114.08 or push lower below the 13-period moving average. The break above yesterday's high will expose the next key resistance level at 114.50, while the break below the 13-period moving average will risk that the rally will lose momentum and prices will push lower towards the 50-period moving average at 113.34
Support: 113.63 / 113.34
Resistance: 114.03 / 114.50